Rco Engineering, Inc v. Acr Industries, Inc

597 N.W.2d 534, 235 Mich. App. 48
CourtMichigan Court of Appeals
DecidedJuly 14, 1999
DocketDocket 201436
StatusPublished
Cited by2 cases

This text of 597 N.W.2d 534 (Rco Engineering, Inc v. Acr Industries, Inc) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rco Engineering, Inc v. Acr Industries, Inc, 597 N.W.2d 534, 235 Mich. App. 48 (Mich. Ct. App. 1999).

Opinion

*51 Holbrook, Jr., J.

Plaintiff RCO Engineering, Inc., appeals as of right from the trial court’s amended order of dismissal, which was entered following a jury trial. We affirm.

I. BACKGROUND FACTS AND PROCEDURAL HISTORY

In 1968, defendant Roger W. Blanchard and others purchased some vacant property located in Roseville, Michigan. Facilities constructed on the property by a predecessor company to defendant ACR Industries, Inc., (hereinafter ACR) were used by ACR and its predecessor from 1968 until 1988. Both ACR and its predecessor manufactured aerospace equipment at these facilities. In 1968, ACR’s predecessor placed a three thousand-gallon underground storage tank on the property. Petroleum products used by ACR during the manufacturing process were routinely dumped into the tank. ACR continued to use the tank until ACR moved from the property in 1988.

In 1987, Paul Carollo, a founder of plaintiff corporation, purchased the property from defendants Robert and Mary Kazmarek, and Blanchard. The property was then leased to plaintiff. In 1991, plaintiff began the process of removing the storage tank. In July of that year, plaintiff confirmed that there had been a release of hazardous substances from the tank. At the time, administrative rules promulgated by the Department of Natural Resources (dnr) under the then-current version of the Michigan Environmental Response Act (mera), MCL 299.601 et seq.; MSA 13.32(1) et seq., 1 identified three distinct types of *52 cleanup that could be done on a site contaminated by the discharge of hazardous substances. These cleanup types were labeled “Type A,” “Type B,” and “Type C.” See 1990 AACS, R 299.5703(p) through (r); 2 299.5707 through 299.5725. 3 Plaintiff chose to remediate the site using a Type A cleanup.

In January 1993, plaintiff brought suit against defendants under the mera. Plaintiff alleged that ACR was liable for approximately $1.5 million in response activity costs 4 incurred in cleaning up contamination *53 of the property caused by the leaking of hazardous substances from the storage tank. Defendants filed a countercomplaint in which they (1) sought contribution for any remediation costs, 5 (2) alleged that plaintiff was liable for all costs because plaintiff was the owner of the storage tank at the time of the hazardous substance release, and (3) alleged that plaintiff acted negligently in remediating the contamination. At trial, the parties hotly contested the questions whether a Type A or Type B cleanup should have been used to remediate the site and whether the issue of cost should enter into any examination of the appropriate type of cleanup.

A jury found that although defendants were liable, plaintiff failed to establish that any response activity costs in excess of $990,000 were necessary. Given that plaintiff had already been reimbursed $990,000 by the state pursuant to the then-current version of the Michigan Underground Storage Tank Financial Assurance Act (mustfa), MCL 299.801 et seq.; MSA 13.29(201) et seq., 6 plaintiff took nothing on its claim. 7

*54 II. THE ISSUE OF COST-EFFECTIVENESS

Plaintiff argues that the trial court erred in allowing defendants to present evidence regarding whether a Type A or a Type B cleanup was most cost-effective given the circumstances. Defendants argue that the trial court’s decision was proper. At its essence, the parties’ dispute is one of timing. Both parties agree that the cost-effectiveness of any remedial action should be considered. They disagree, however, on just when cost should be considered in the course of choosing an appropriate remedial action. Plaintiff argues that cost should be considered only when evaluating the methods and technologies used to bring about the type of cleanup chosen. Plaintiff contends that according to the administrative rules, plaintiff had the unfettered authority to chose what type of cleanup it would pursue. Conversely, defendants argue that the administrative rules specifically state that the costs of alternative types of cleanups should be considered before a final determination is made concerning which type of cleanup will be employed.

Resolution of this dispute turns on an interpretation of the relevant administrative rules. “In construing administrative rules, courts apply principles of statutory construction.” Attorney General v Lake States Wood Preserving, Inc, 199 Mich App 149, 155; 501 NW2d 213 (1993). Interpretation of administra *55 tive rules is a question of law that is reviewed de novo on appeal. Port Huron v Amoco Oil Co, Inc, 229 Mich App 616, 624; 583 NW2d 215 (1998). The primary goal of judicial interpretation of administrative rules is to give effect to the intent of the author. Id.

[I]f the agency’s rule is clear and unambiguous, judicial interpretation is neither required nor permitted, and the court should not look beyond the ordinary meaning of the unambiguous language. If construction is warranted, we must construe the rule according to the common and approved usage of the language, resorting to dictionary definitions where appropriate. [Lake States, supra at 155 (citations omitted).]

As previously noted, the administrative rules delineate three separate types of cleanup, each recognized as fulfilling the directive that “the public health, safety, and welfare and the environment and natural resources” be protected. 1990 AACS, R 299.5705(1). Further, the rules recognize and promote the viability of alternative remedial action. For example, 1990 AACS, R 299.5513(2)(b) states that a feasibility study 8 shall develop “alternative final remedies that provide for a reduction in risk that is sufficient to meet the criteria set forth in part 7 of these rules.” In fact, one recognized alternative remedy is the “[n]o action alternative.” Id. at 2(a)(iii). The rules also recognize that an acceptable remedial action might be achieved by combining elements of the three types of cleanup alternatives. 1990 AACS, R 299.5705(3).

The rules also clearly indicate that cost must be considered when choosing between alternative reme *56 dial actions. For example, 1990 AACS, R 299.5513(3) states that the cost of remedial action “shall” be considered when an initial list of alternative remedies is being narrowed:

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Related

RCO Engineering, Inc. v. ACR INDUSTRIES
633 N.W.2d 449 (Michigan Court of Appeals, 2001)
RCO Engineering, Inc. v. ACR Industries, Inc.
246 Mich. App. 510 (Michigan Court of Appeals, 2001)

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Bluebook (online)
597 N.W.2d 534, 235 Mich. App. 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rco-engineering-inc-v-acr-industries-inc-michctapp-1999.